Circle Launches Cross-Chain Transfer Protocol for USDC to Simplify Multi-Chain Transactions
Circle, a global digital financial technology firm and issuer of USDC and Euro Coin, announced the mainnet availability of its Cross-Chain Transfer Protocol (CCTP) for developers building on Ethereum and Avalanche. This move will enable USDC to flow natively across supported chains, delivering a high level of interoperability, security, liquidity and simplified user experiences.
The CCTP is a permissionless protocol that allows USDC to “teleport” from one blockchain to another without the risks and complications of traditional “lock and mint” approaches. The technology will provide a secure and capital-efficient way to transact with USDC in a multi-chain environment. Furthermore, it will help unify liquidity around native USDC in Web3, solving fragmentation issues caused by multiple, unofficial bridged versions of USDC floating around the ecosystem.
1/ Today marks a new milestone! Cross-Chain Transfer Protocol (#CCTP) is now on mainnet for @Ethereum and @Avax. https://t.co/ExIAWywNGt
— Circle (@circle) April 26, 2023
In addition, CCTP will enable developers to create consumer-scale Web3 apps by stacking key capabilities, such as trading, lending, payments, gaming and more, together to simplify the user experience and deliver new mainstream use cases to their users. The protocol can support various cross-chain transactions with USDC, such as digital asset swaps, making deposits on a decentralized exchange with USDC sourced from another chain, or purchasing NFTs across chains.
CCTP provides developers with a secure way to programmatically burn and mint USDC within their apps. To initiate a transfer, a user accesses an app and specifies the recipient wallet address on the destination chain. The app facilitates a burn of the specified amount of USDC on the source chain. Circle observes and attests to the burn event on the source chain and provides authorization to mint the specified amount of USDC on the destination chain. The app uses the attestation to trigger the minting of USDC, and the specified amount of USDC is minted on the destination chain and sent to the recipient wallet address.
Joao Reginatto, VP of Product at Circle, said, “CCTP helps to solve today’s DeFi liquidity and capital inefficiency issues due to the risks and fragmented nature of bridged assets. With CCTP, developers can simplify the user experience, and their users can trust that they are always transacting with a highly liquid, safe and fungible asset in native USDC. This milestone makes USDC a natively multi-chain digital dollar.”
Several of the largest multi-chain apps, wallets, bridges, and messaging protocols, including Celer, Hyperlane, LayerZero, LI.FI, MetaMask, Multichain, Rarimo, Router, Socket, Wanchain, and Wormhole, are already live with CCTP on mainnet. CCTP is expected to expand to additional chains in the second half of 2023. Developers interested in building with Cross-Chain Transfer Protocol can get started today by visiting Circle’s website.
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